A Quick Mortgage Guide For Real Estate Buyers

Whether you are buying your first house or your 5th, staying current with financing terms may not be your specialty.  We have compiled this quick mortgage guide for real estate buyers to assist you.

 

PAYMENT CHART

 

You can use this chart to aproximate a 30 year fixed rate loan with 20% down.

 

LOAN TERMS

 

• Fixed Rate
  • A fixed interest rate is an interest rate on a liability, such as a loan or mortgage, that remains the same either for the entire term of the loan or for part of the term.
    Read more: Fixed Interest Rate

 

• Adjustable Rate
  • An adjustable-rate mortgage is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.
    Read more: Adjustable-Rate Mortgage (ARM)

 

• Interest Only
  • A type of mortgage in which the mortgagor is only required to pay off the interest that arises from the principal that is borrowed.
    Read more: Interest-Only Mortgage

 

• 15 and 30 Year
  • The term or length of the loan

 

• Balloon
  • A balloon mortgage is a type of short-term mortgage. Balloon mortgages require borrowers to make regular payments for a specific interval, then pay off the remaining balance within a relatively short time.
    Read more: Balloon Mortgage

 

LOAN TYPES

 

• Conventional or Conforming
• FHA
• VA
• USDA
• Non-Conforming
• Portfolio
• Jumbo

 

Learn more about loan types and buying a home here.

DOCUMENTATION NEEDED FROM BUYERS

 

Here is a quick list of the documents that you will need to provide when you apply for a mortgage.  You may be asked for additional items along the way.

• Most recent 2 years’ signed tax returns
• Your Most recent 2 months’ asset statements
• The Most recent 2 years’ W-2 Forms
• Valid Photo ID
• Last 30 days’ pay stubs

 

WAITING PERIODS AFTER A FORECLOSURE, SHORT SALE OR BANKRUPTCY

 

	FORECLOSURE	SHORT SALE (DEED-IN-LIEU)	CHAPTER 7 BANKRUPTCY	CHAPTER 13 BANKRUPTCY
FANNIE MAE	7 Years from when title is transferred from the borrower’s name	4 Years (includes deeds-in-lieu)	4 Years from dismissal or discharge date*	2 Years for discharge date*4 Years from dismissal date 4 Years from dismissal date*
FREDDIE MAC	7 Years from when title is transferred from the borrower’s name No wait period requirement for loans receiving LP Accept/Eligible recommendation
FHA	3 Years from the latter of the date title transferred from the borrower’s name or the date a claim was paid from the FHA	3 Years from the completion date *Per FHA ML 13-26, FHA financing can be obtained in less than 3 years under certain conditions	2 Years from discharge or dismissal date	1 Year of the payment must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage
VA	2 Years from when title is transferred form the borrower’s name	As long as the veteran did not pursue a short sale to take advantage of declining market conditions and has sufficient eligibility for new transaction, we will consider the overall credit history of the buyer	2 Years from the discharge or dismissal date	1 Year of the payout must elapse and the payment performance must be satisfactory; the buyer must receive permission from the court to enter into a mortgage
USDA RURAL	3 Years from when title is transferred from the borrower’s name	Three Years from completion date	3 Years from discharge or dismissal date	1 Year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage

 

No wait period requirement for loans receiving Loan Prospector Accept/Eligible4 Years from discharge or dismissal date*2 Years form discharge or dismissal date*

 

Jumbo loans will be based on specific investor guidelines. See your loan officer for details.
*Multiple bankruptcies within most seven years require a five-year waiting period. Fannie Mae and Freddie Mac require an AUS Approval. Not a commitment to lend. Borrower must meet qualification criteria. We are not affiliated with the US Government. Effective May 2016